College Athletes Could Cash in Under Proposed Revenue-Sharing Bill

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College Athletes Could Cash in Under Proposed Revenue-Sharing Bill
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In 2018, USC football brought in $50 million. Under a proposed California bill, half of that would be shared with players. RossDellenger has more on the measure, which proponents say will protect athletes

Under a proposed bill in the California State Assembly, state colleges and universities would be required to share a percentage of revenue with athletes.California, the state that spearheaded sweeping name, image and likeness reform, is now seeking to advance the rights of college athletes another step—with revenue sharing.

The legislation, dropping amid an athlete rights movement that has generated sweeping changes to archaic NCAA policies, touches on a raging issue percolating throughout college sports. The revenue-sharing debate has gained momentum as revenue growth within the college sports industry continues to expand through multimillion-dollar football and basketball television deals.

“The status quo in NCAA sports is abusive, deadly and exploitative,” Huma said in a statement to SI. “This bill would ensure college athletes have crucial protections and can share in an equitable amount of the revenue they produce in a way that supports degree completion.” For instance, according to 2018 budget figures provided to the U.S. Department of Education, USC football brought $50 million of revenue. The school paid out about $6.3 million in scholarships. That leaves a $19 million gap between the amount paid in scholarships and 50% of the total sport’s revenue .

This new revenue option was not in the original bill, introduced last year. It gives universities a chance to distribute a smaller amount of additional funds to athletes in order to preserve other non-revenue-generating sports programs, many of them Olympic sports teams such as swimming and diving, track and field and gymnastics.

Surging dollar figures are behind the current athletes rights movement. In the latest example, conference commissioners and presidents just approved an expansion to the College Football Playoff that could fetch $2 billion a year in television revenue, experts believe.NCAA’s amateurism rules that it plans to pursue unfair labor practice charges against USC, the Pac-12 and the NCAA as single and joint employers of FBS football players and Division I men’s and women’s basketball players. The move was announced 10 months after the NCPA filed a charge with the NLRB office.

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